Excellently put. However, you don't need to get all tied up in CFD's, derivatives, "shorting"/"borrowing".
What you do need is some (only some, not heaps like Buffett) capital, an eye to the vigorish, and have long positions in the market cycling with cash on the sidelines (like all decent citizens - damn those "hedgies"). How much do you risk? Its up to you and no-one here can inform you better than you can inform yourself.
